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Are they really losing business by being cross compatible?

Both of them make their wares available on Apple devices with no problem.

So I don't get this at all:

For Amazon users that has meant having no access to the bulk of Google’s services on their devices. If you search the Amazon Appstore, there are no signs of Google apps anywhere. No Gmail, no Google Maps, no nothing. The only sign of friendliness on Google’s behalf is a YouTube app credited to "youtube.com," but otherwise, Amazon device owners are deprived of many of Google’s popular services. This makes Amazon's devices less appealing than Android phones and tablets to avid Google users.

The uncooperative relationship works both ways. For years, Amazon has kept its popular Instant Video service from working with Google devices. That service is Amazon’s equivalent of Netflix and comes included with Amazon Prime, the $99-per-year membership that includes benefits like free two-day shipping. Amazon Instant Video does not work with Google’s popular Chromecast steaming stick, which allows users to watch Internet video on their TVs. Amazon has also kept Instant Video off of Google Play and did not give Android users access to it until earlier this year when it made it available through the Amazon Appstore feature on its now-removed app. By keeping Amazon Instant Video off Google’s gadgets, the tens of millions of global Amazon Prime members are more compelled to buy the Amazon Fire Phone and the Amazon Fire TV.